Creating A Contract

Question 1

Agreement and the objective test

Answer 1

Certainty- agreement must not be vague

Objectivity- law not concerned with parties inner intentions, but what parties said or did, and what led the other party (or reasonable person) to believe (RTS v Miller)

Question 2

Implications of objective approach

Answer 2

-a person may be bound by a mistake in the offer (centrovincal Estates v Merchant Investors Assurance)

-a person may be bound by a mistake in the acceptance (smith v Hughes)

-mistaken offers, would the person have realised a error? (Hartog v Shields)

-if the Offeror induced the mistake, they may not be able to enforce the contract (Scriven v Hindley)